Didn't read the whole thread, so some of this may have already been answered.
I did this feat on 2 of my characters. Around 25,000 bone chips turned in between the 2. Best way to get bone chips in my opinion is what I call "vendor shopping". Just go into a town, all towns preferrably... and look to see what people have sold to vendors. You can acquire thousands of bone chips this way at bare minimum prices.
If you are KOS to the crusaders then you need to hand in as many chips as you can before they wander back and then move out of the way. I had it timed to an 11 minute cycle at one point. Having skeleton illusion can go a long way with giving that temporary faction boost. (the 2 characters i did this on were enchanter / necro) So it was slightly easier for me but even they were kos at first in skeleton and even iksar illusion.
Control+click is your friend. It will allow you to turn in 100 chips in a couple minutes.
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